Wednesday, October 20, 2021
Real EstateUK

Millions face average council tax bills of over £2,000

council tax bills

The typical fee in England is set to rise 4.3 per cent next year, finds the Chartered Institute of Public Finance and Accountancy

Millions of struggling families face average council tax bills of over £2,000 a year for the first time, according to a research.

The Chartered Institute of Public Finance and Accountancy found that the typical fee in England is set to rise by £78.31 – or 4.3 per cent – next year.

This means an average band D property in the North East and South West is set to pass £2,000 a year – to £2,029.90 and £2,008.78 respectively.

There were major regional variations in the increases on 2020/21 council tax bills, the researchers said.

The highest spikes were in inner London (5.5 per cent) and the lowest were in the East of England (3.5 per cent). In London the average council tax for a band D property in 2021/22 is £1,377.34 –the lowest in the country for this category.

The average bill is expected to be £1,895.25.

Rob Whiteman, chief executive of the Chartered Institute, said: The stark contrast between the levels by which different regions are raising their council tax is indicative of the difficult political position created for them by central government.

The survey was based on responses from 290 authorities in England and Wales. Of those councils in England, all but 13 will be increasing their council tax. The typical bill in Wales is set to increase by 3.9 per cent, or £64.58.

Council tax varies across the country as local authorities have the power to add their own levies to bills.

These are capped by the Government so they can only be raised to a certain level each year.

Robert Palmer, of Tax Justice UK, said: It can’t be right that a Park Lane millionaire can end up paying a comparable amount of council tax as a just-about-managing family in the North.

Harry Fone, of the TaxPayers’ Alliance, added: Council tax bills are going sky-high and feel like a kick in the teeth to taxpayers.

He added: With new fiscal powers a long way off, local authorities must do more right now to eradicate wasteful spending and stop these huge hikes.

But a Local Government Association spokesman said authorities faced ‘tough choices’. He said: Council tax rises – particularly the adult social care precept – have never been the solution to the long-term pressures faced by councils, particularly in social care which is desperately in need of reform.

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